2nd May 2019 12:08
LONDON (Alliance News) - Cerillion PLC shares took a hit Thursday as the billing software provider said first half results will be behind the previous year.
Shares were down 8.9% at midday at 154.00 pence each.
For the six months ending September 30, Cerillion expects revenue to be about GBP7.0 million, 17% lower than the GBP8.4 million reported the year before.
The company is also guiding for its earnings before interest, tax, depreciation and amortization to fall, to decrease 75% to GBP400,000 from GBP1.6 million.
Despite the expected drop, Cerillion said trading in the first half has been "encouraging". The firm signed a "major" new contract, worth an initial USD6.8 million and additional contracts worth "in excess" of USD10.0 million.
"Once signed, these contracts will make a substantial contribution to the second half, with profitability in particular benefiting from the significant high margin licence components. Accordingly, the board anticipates that the group's results for the current financial year will be significantly weighted towards the second half, and that the company remains on track to meet current market forecasts for the full year," the company said.
In financial 2018, Cerillion reported pretax profit of GBP1.8 million on revenue of GBP17.4 million.
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